The Federal Open Market Committee (FOMC) began publishing the minutes for its monetary policy meetings in 2005. The detailed minutes from these meetings give some of the best insight into the monetary policy decision making process and what the FED thinks about economic developments inside and outside of the US .

Markets tend to focus most of their attention on the key points discussed during the meeting that suggest future interest rate changes. For example if the minutes state that high energy costs and a rapidly expanding housing market are fueling inflation, then markets participants will tend to monitor these key sectors closely in order to gauge the likelihood of a rate increases in the future.

Because minutes come out three weeks after the FOMC meets, markets will discount some information in the report. Market participants tend to read into the overall mood the Federal Reserve gives during the meeting. If the FOMC is cautious about the inflationary outlook for the economy (characterized as “Hawkish”), then the market has a higher likelihood of future rate increases. If the Bank is optimistic (“Dovish”) it suggests to markets that inflation is in check and that future rate increases are less likely.